China’s Tech Giants to Check Identity of Users for NFT-Related Purchases

China’s Tech Giants to Check Identity of Users for NFT-Related Purchases

The initiative will reportedly require firms to "only support legal tender as the denomination and settlement currency."

China’s biggest tech giants, including Alibaba, Tencent, Baidu, Ant Group, and JD.com, have recently signed an agreement to check the identities of users buying and selling non-fungible tokens (NFTs) on trading platforms.

According to the official announcement issued on June 30th, the “self-disciplined development proposal” document, citing the current ban on cryptocurrencies and signed by the China Cultural Industry Association (CCIA), brings some key changes into the market. From now on, tech giants will have to “require real-name authentication of those who issue, sell and buy” the assets.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

Best Types of Blockchains Revealed (5 Animated Rules)

Best Types of Blockchains Revealed (5 Animated Rules) Best Types of Blockchains Revealed (5 Animated Rules)

On top of that, the document also read that trading platforms should have relevant regulatory certifications and “firmly resist” any speculation, as well as ensure that the signatories wouldn’t build centralized marketplaces for anonymous NFT trading.

However, Liu Jiahui, a partner at Beijing’s Derun Lawyers, noted that the proposal won’t be enough to stop people from trading with their digital assets, mentioning that they are not “entitled to be financial or securities products.” He added:

“Chinese laws stipulate that the owner of property rights can dispose of the property at any time. Digital collectibles have higher liquidity than traditional artworks. It is in fact impossible to prohibit speculation during circulation.”

Last year, China banned Bitcoin (BTC) mining and is planning to roll out its brand new CBDC dubbed the digital Chinese yuan (e-CNY) in the near future.

Gyth L. - Crypto Analyst

by Gyth L. - Crypto Analyst, BitDegree


Loading...